The Jersey Division of Yankee Products Has Invested Capital of $1,400,000

Multiple Choice

The Jersey Division of Yankee Products has invested capital of $1,400,000. This division incurred $80,000 in interest expense and $140,000 in income tax expense in 2014. If this division reported a return on investment of 14 percent, how much is net operating profit after taxes?

A) $416,000
B) $196,000
C) $116,000
D) $276,000